How New York Credit Scores Can Drop When Credit Limits Are Missing from Credit Reports

When their credit limits are missing from their credit reports, New York consumers might actually see their credit scores drop.

When it comes to their credit reports, New York consumers should check them regularly to verify that all of the information on them is accurate and complete. Even seemingly small details can lead to credit score drops if they lack accuracy or completion. For example, if creditors fail to report your spending limits on your credit cards, this can lead to an unnecessary loss of credit score points. This is because the credit bureaus typically substitute something called a “high balance” (or “high credit”) for a missing credit limit. Of course, for some New York credit card users, this is a harmless swap. However, for others, it is credit score damaging.

Why Credit Limits Should be Listed on Credit Reports Belonging to New York Consumers

On credit reports, every credit card account or loan has a high balance associated with it. This term refers to a dollar amount that reflects the highest amount ever owed on a loan or credit card. For loans, the high balance is always the original amount borrowed, and it does not change. But high balances for credit cards might change, depending on consumer activity.

For example, if you have a credit card with a $1,000 spending limit, and the most you’ve ever charged to this card is $200, your high balance is $200. Now, any New York consumer with a $200 balance on a credit card with a $1,000 credit limit has a 20% utilization rate for that account. This is, as long as their actual spending limit appears on their credit reports.

New York credit card users with 20% utilization rates are managing their credit use quite well. Ideally, you should never use more than 30% of your available credit at a given time. If you do, your credit score can drop because, in the eyes of lenders, you are too reliant on credit to make ends meet. Yet, your 20% utilization rate is good, and your credit score is safe – unless your credit limit is missing.

Again, when New York consumers have blanks instead of credit limits on their credit reports, the credit bureaus normally use high balances to calculate credit scores. Therefore, in the case of a missing credit limit, your utilization rate in the above scenario is based on your $200 high balance. This means that, based on your credit report information, your utilization rate isn’t 20%, but 100%. It looks like your credit card is maxed out, and your credit score drops.

How New York Consumers Can Avoid Missing Credit Limits on their Credit Reports

All New York consumers should check their credit reports from each of the major credit bureaus at least once every 12 months. Under the Fair and Accurate Credit Transactions Act (FACTA), this is how often you may request free copies of your credit reports from TransUnion, Equifax, and Experian. Also, the easiest way to get all three credit reports at once is to visit www.annualcreditreport.com.

Once you have access to your credit reports, check all of your credit card accounts. Look for accurately reported credit limits. Next, look at all of the other information contained in each of your credit reports. Then, if anything seems inaccurate, fraudulent, or otherwise wrong in any way, contact Credit Repair Lawyers of America in New York.

Our team of credit pros will dispute errors on your credit reports and fix your credit issues, so you can enjoy the benefits of the credit score you’ve actually earned. If creditors or the credit bureaus won’t cooperate with out requests, an experienced credit attorney will do whatever it takes to get you clean credit reports – for free. Even we need to file a lawsuit on your behalf, you never pay anything out of pocket for the work we do.

The Free and Legal Way to Get Better Credit in New York

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Carl Schwartz at (646) 859-3045 or sending him a message through our contact page.

For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/credit-repair-free/.